Question

uces 10,000 units/month. Find breakeven level if FC- $85,000 /month, revenue (8 Marks) Question 5:i) A plant units/mont is S6/unit and variable cost is $4/unit. Determine expected monthly profit or loss Solution: Perform a make/buy analysis where the common variable is X, the number of units produced each year. AW relations are: Aw,make=-18,000(A/P, 15%,6) Away =-1.SX +2,000(A/F,15%,6)-04X Draw the diagram showing the breakeven point and which alternative should be selected if production level (12 Marks) is less than breakeven quantity?

Answer 1

A plant Predluces lo,ooo units montb. Find ekem and uauiable cost is $4lunit Delerm'ne ezpectest mofit os \oss 8 5000 C6-4 QBE SOoO = ZSboo 24 2 500 units/month 2. rodiuc eu el ,the numbe a 18 가히yea- Breakdour) Tf anticipat pod on41 mate autesnaJive Cloa 3 buy 구 5 4 3 2